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Foreign Exchange Resource |
Free Foreign Exchange and Currency Resources Updated Daily: 42 Major Currencies Covered. |
Foreign Exchange Rate Charts |
Why is a currency falling? Rising?Since many currencies are floating, or publicly traded, their value is subject to fluctuations in comparison to other world currencies. Higher interest rates can cause increased demand for a country's investments and currency. Lower interest rates can have the opposite effect. The status of international and domestic trade can play a role. As can economic policies, resource and commodity prices. Market psychology plays a role, especially in the short term. Much like the equity markets, Forex markets can be volatile and unpredictable animals. |
What is currency hedging?Many businesses, individuals and institutions minimize the effect of volatile exchange rates by hedging. Hedging is the practice of offsetting risk, often by purchasing one position to protect another position. For example, a company transacting business in both Euros and US Dollars may invest in both currencies to offset fluctuations in either direction. As another example, many investors recommend gold as an investment to protect against a falling US dollar. Recent gold prices are a testament to the popularity of this strategy. |
The Foreign Exchange (FOREX) rates shown and used the the exchange calculations are derived from publicly available data sources. Please see our disclaimer. |